How to Prepare Your Financials for a Business Valuation in NZ

A valuation is only as useful as the information behind it. Before you ask for a business valuation or speak with a buyer, prepare a clean financial story that another person can follow.

Start with three years of evidence

Gather filed financial statements, GST returns where relevant, income tax information, monthly management accounts and bank records. Monthly detail helps explain seasonality, one-off events and recent changes that a single annual total hides.

Separate normal operations from owner choices

Create a schedule of proposed add-backs. Common examples may include an owner's salary, personal expenses, unusual legal costs or a one-time repair. Do not add back an expense just because it feels inconvenient. If a buyer will need to pay for a replacement manager, vehicle or software, that cost belongs in the analysis.

Reconcile the story

Revenue should make sense against GST returns, bank deposits, invoices and customer volumes. Gross margin should be explainable. Large movements in wages, rent, stock, debtors or creditors deserve a written note.

Prepare a buyer-ready folder

Include a short explanation of the business model, a list of assumptions, key contracts, lease details and a schedule of assets. Clear information can reduce perceived risk, but it cannot replace independent accounting advice. Start with OpenBiz's indicative valuation tool and treat every result as a prompt for better questions.